Captive unit
Encyclopedia
A captive unit is a business unit of a company
functioning offshore
as an entity of its own while retaining the work and close operational tie ups within the parent company.
Captive unit is one way of establishing presence in cheap labour
markets such as China
and India
rather than outsourcing
work to third party companies established offshore.
Captive Generating plant means a power plant set up by any person to generate electricity primarily for his own use and includes a power plant set up by any co-operative society or association of persons for generating electricity primarily for use of members of such co-operative society or association. Note that the word primarily is not defined anywhere. Also note that by this definition, a group of industries can set up a big generating station for their groups use and sell excess power.
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...
functioning offshore
Offshoring
Offshoring describes the relocation by a company of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Even state governments employ offshoring...
as an entity of its own while retaining the work and close operational tie ups within the parent company.
Captive unit is one way of establishing presence in cheap labour
Wage labour
Wage labour is the socioeconomic relationship between a worker and an employer, where the worker sells their labour under a formal or informal employment contract. These transactions usually occur in a labour market where wages are market determined...
markets such as China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
and India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
rather than outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
work to third party companies established offshore.
Captive Generating plant means a power plant set up by any person to generate electricity primarily for his own use and includes a power plant set up by any co-operative society or association of persons for generating electricity primarily for use of members of such co-operative society or association. Note that the word primarily is not defined anywhere. Also note that by this definition, a group of industries can set up a big generating station for their groups use and sell excess power.